C&EN: TODAY'S HEADLINES - HASSAN TO LEAD SCHERING-PLOUGH

ANN THAYER

Schering-Plough, after suffering through two years of stagnating sales growth and declining earnings, has elected Fred Hassan, 57, as its new chairman, president, and CEO. He succeeds Richard Jay Kogan, who relinquished the title of chairman in November 2002 and the title of CEO on April 20.

"Despite the major challenges that Schering-Plough faces today, we can turn this situation around and build a strong future."

Hassan PHARMACIA PHOTO

Hassan became free to join Schering-Plough two weeks ago after declining the vice chairman's job at Pfizer, which just acquired Pharmacia, the company he formerly headed. Hassan had joined what was then Pharmacia & Upjohn in 1997, and within a few years, he had improved its profitability, purchased Monsanto for its Searle drug unit, spun off Monsanto's agribusiness operations, and struck a $58 billion merger deal with Pfizer.

Schering-Plough's shareholders and board of directors hope Hassan will now work his magic on improving his new company. In the past year, the company saw sales drop after its $3 billion-per-year antihistamine Claritin became a cheaper over-the-counter product. The firm also had to resolve FDA compliance issues through a $500 million consent decree and faced a Securities & Exchange Commission probe and civil action related to inappropriate information disclosures.

Last week at Schering-Plough's annual meeting, Hassan laid out a five-phase agenda he expects will take five to six years to complete. It includes stabilizing the business, then repairing and turning it around through an improved corporate culture, reduced costs, and better product flow. Eventually, Hassan foresees growth based on a foundation of several key products, including the anticholesterol drug Zetia, launched in late 2002 with Merck.

Standard & Poor's calls Hassan's appointment a positive development but says the change does not affect its outlook on the company. For now, the credit-rating agency says it will monitor Schering-Plough's progress in revitalizing its core pharmaceutical business.